21. When is uncollectible accounts expense recognized if the direct write-off method is used?
22. How do the percent of revenue method and the percent of receivables method to estimate uncollectible accounts expense differ?
23. What is the effect on the accounting equation of writing off an uncollectible account receivable when the direct write-off method is used?
24. If Kettler Company loans $24,000 to Beam Company on March 1, 2016, and the one-year note carries an interest rate of 7%, how much interest revenue will Kettler recognize in 2016? How much in 2017?
25. Vailes Services Company loaned $6,000 on August 1, 2016 to an individual who issued Vailes a promissory note with 6% interest. The issuer of the note repaid the principal and interest on July 30, 2017. How did the August 2016 event affect Vailes's statement of cash flows? How did the July 2017 event affect it?
26. When a credit card sale is recorded, what is the effect on the accounting equation?
27. How is the accounts receivable turnover computed? What information does this ratio provide?
28. How is the number of days to collect accounts receivable computed? What information does this ratio provide?
29. Discuss briefly the costs of making sales on account.
30. What financial statement ratios facilitate the measurement of a company's effectiveness in collecting cash from customers?